I never thought I would be giving a lawyer advice, but here goes.........First....S&W is competing in a VERY competitive market; we know it, and believe me, THEY know it! In order for any business to survive in such a competitive market as fire arms is, they are obliged to invest tons of money on advertising; If I were you, I would invest an hour or two of my time, draw up a nice, legal sounding letter, pointing all of this out, then advising them that inasmuch as they have apparently decided to play hard-ball with you, that you will be launching an "advertising campaign" of your own. (only yours will be essentially free )
There's a huge difference between a big business like S&W "talking their products up" in all of the very costly media that they must purchase space in, and what you as an individual have at your disposal.........the entire internet! Your very negative experience with S&W's product has already cost them a considerable amount of not only money, but I'm guessing thousands of dollars worth of plain old, "ill will"; I would make "numerous copies" of my letter, and I would see to it that every T,D & H in the S&W management team received a copy of it! I believe that's the key to you prevailing in this matter; by causing a LOT of people in their upper management to become aware of this matter.
Spend a bit of time looking up as many on-line forums as you can find, and get this story into every one of them, and communicate that fact in your next letter to S&W, and FOLLOW IT UP weekly, mentioning each new forum you have made aware of this matter.
What you're communicating here is simply very poor business practices on S&W's part; every person who reads about this on a gun forum will probably negate fifty K worth of advertising budget investment by S&W, and I would continue to keep pointing that out to them OFTEN! Let these people know that it's your intention to continue making all of the many thousands of gun enthusiasts that ALL spend a considerable amount of their time on the many gun forums, aware of this ridiculous treatment by S&W; I think if you show enough determination to these people, that before this is all over with they will be begging you to "accept" a brand new rifle if you'll just "cease and desist" in you efforts. When it gets to that point, I would remind them of all of the valuable time that you have been obliged to spend pursuing this matter and let them know that you need to be compensated for it. Good luck!